A robust performance in its agricultural division provided Bayer with unexpected tailwinds at the start of the year. First-quarter underlying operating profit (EBITDA) rose by nine percent to 4.45 billion euros, the pharmaceutical and life sciences group announced on Tuesday. Analysts had on average expected 3.93 billion euros. Revenue fell by more than two percent to 13.41 billion euros, though Bayer grew by over four percent on a currency-adjusted basis. 'We are continuing to drive the implementation of our strategy forward and are firmly committed to achieving our targets for the current year,' said CEO Bill Anderson.

Bayer shares rose by more than two percent in pre-market trading. Anderson is under growing pressure from investors who, following successes in the corporate restructuring, are now demanding tangible financial progress. Furthermore, they are pushing for a final resolution to the wave of glyphosate litigation in the USA, which has heavily burdened the company for years. At the end of April, the U.S. Supreme Court appeared divided during a hearing regarding the multi-billion dollar glyphosate lawsuits. A ruling, which could represent a breakthrough for Bayer, is expected by the end of June.

The agricultural division benefited in the first quarter from the settlement of a licensing dispute with U.S. rival Corteva, which contributed nearly half a billion euros to revenue. Additionally, prices for the weedkiller Dicamba recovered in the USA. Earnings in the segment rose by almost 18 percent. In the pharmaceutical business, however, Bayer felt the impact of patent expiries for former blockbuster drugs such as the anticoagulant Xarelto and the eye medicine Eylea. Conversely, sales of newer drugs like the cancer treatment Nubeqa and the kidney medication Kerendia grew strongly. Pharmaceutical earnings fell by 7.5 percent, primarily due to increased distribution costs.

The Leverkusen-based group reaffirmed its currency-adjusted outlook for the current year. However, due to shifting exchange rates, Bayer slightly adjusted its target ranges upward on an unadjusted basis. For 2024, management now expects revenue of 44.5 to 46.5 billion euros (previously: 44 to 46 billion) and earnings before special items of 9.4 to 9.9 billion euros (previously: 9.1 to 9.6 billion). 'This is only a snapshot,' said CFO Wolfgang Nickl. 'We expect further volatility in exchange rate developments for the remainder of the year.'

(Report by Patricia Weiss, edited by Sabine Wollrab. For inquiries, please contact our editorial office at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)